The stabbings occurred on Friday in the Puutori-Market Square area. The two persons killed in the attack were both Finnish.

The stabbings in the Finnish city of Turku that left two people dead and eight injured are being treated as acts of terror, police said on Saturday.

"The incidents were initially investigated as murders, but in the light of further information received during the night, the offences now include murders with terrorist intent and their attempts," police officials said, adding that ‘officers carried out a number of raids overnight’.

The attacker, who was shot in the leg by police and taken into custody, was an 18-year-old Moroccan. Police said that his identity was known but it was not released.

The stabbings occurred on Friday in the Puutori-Market Square area. The two persons killed in the attack were both Finnish. An Italian national and two Swedish citizens were among the eight people injured, the police said.

Kent Svensson, 44, of Sweden said he witnessed a man with "a huge white knife" running and stabbing people in his path.

"It was really horrible. We were sitting on a terrace just next to the square and this woman just screamed like hell and this guy was standing in front of her with a huge knife just stabbing people," he said.

The Finnish government condemned the stabbings and flags were lowered in Finland, which has no past experience of jihadist attacks.